I wouldn't be without one...
But yep - You can run them without floppy's no problem.
Use nLite to intigrate SATA Drivers to your XP CD.
OK, if you update the firmware on the SATA Chip - Need to burn a new CD...
Or if you want to run Memtest, you need to do it on your USB Pen, or burn another CD...
Or run Ghost, it's burn another CD...
I don't have many blank CD's.

(Plenty blank DVD's)
So use a floppy quite a bit, also handy for booting to NTFS4DOS instead of burning yet another CD.
Use it too often not to have one. But for day to day use, they are not required.